According to the IRS:
The federal government does not have an inheritance tax. The six states that impose an inheritance tax are:
Iowa Kentucky Maryland Nebraska New Jersey Pennsylvania
Inheritance taxes are yet another means for states to get revenue that they can then spend on budget items. At least, in theory. In reality it's another way for them to avoid having to be fiscally responsible with the taxes they already collect.
But doesn't the IRS count an inheritance as Wages, Tips, & Other Considerations, AKA "income?" So there's no specific federal Inheritance Tax, but they still hit you with a big bite for income, even though the person leaving it to you already paid taxes on it.
...but they still hit you with a big bite for income, even though the person leaving it to you already paid taxes on it.
Yes. You are entirely correct. The Federal taxation powers are an insane overreach from what was originally intended.
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